The familiar strains of “Pomp and Circumstance” resonate in the auditorium. A swell of pride rises within you as your child, now a college graduate, confidently flips their tassel. They’ve made it, and so have you. With graduation behind them and perhaps a new job on the horizon, your financial responsibilities towards them might be non-existent. So, where does that leave you?
It’s almost like getting a pay raise. The funds you previously earmarked for your child’s needs are now free. Sure, you could jet off to a luxury retreat, but before you do, let’s consider some thoughtful avenues for these resources.
1. Balance Your Parental Support
Your heart will forever be intertwined with your child’s well-being, both emotionally and financially. While it’s natural to want to assist them, say with their first home down payment or setting up college funds for potential grandkids, always strike a balance. A chat with a financial planner can guide you in offering support without deviating from your personal financial objectives.
2. Safeguard Your Legacy
Revamping your will can be a proactive step. The previous version likely focused on your child’s guardianship. Now, you can focus on other legacies. Ever thought of donating to a cherished cause? With your newfound funds, now might be the time. Also, mull over designating a responsible child or your spouse with powers of attorney to manage health and financial matters, should the need arise.
3. Reassess Insurance Needs
Does the insurance suit your new ’empty nest’ status? With your child establishing themselves, you might be over-insured. A comprehensive review could highlight potential savings. Remember, your child’s independence can translate to savings for you, whether it’s in health coverage or auto insurance. And now’s also the moment to consider long-term care insurance – a pivotal element often missed in retirement planning.
4. Embrace a Little Indulgence
All work and no play isn’t the best mantra. It’s perfectly alright to channel a portion of your finances towards enjoyment. Always wanted to visit Tuscany or enroll in a pottery class? Now might be the time. A strategic plan with your advisor ensures you have the funds for a touch of indulgence without guilt.
5. Consider a Change of Scenery
Is your current home suitable for this new phase? Perhaps a cozier space or even a sunny condo by the sea appeals more now. Downsizing isn’t just about a smaller space; it can lead to bigger financial freedom. The money saved can be redirected to rejuvenate a passion project or bolster retirement provisions.
6. Prioritize Yourself
With the birds flown from the nest, it’s ‘You Time’. Use this phase to hone in on your aspirations. Engage with professional advisors to ensure your financial strategies echo your current objectives. Whether it’s altering your investment patterns or amping up your asset allocation, the world is your oyster.
Next Steps:
Revisit and update beneficiary designations and wills.
Check in on your insurance portfolio.
Don’t forget to consider long-term care coverage.
Your empty nest can be a gateway to new opportunities. Embrace this phase and make it count!
This commentary on this website reflects the personal opinions, viewpoints and analyses of the Sweet Financial Partners, LLC employees providing such comments, and should not be regarded as a description of advisory services provided by Sweet Financial Partners, LLC or performance returns of any Sweet Financial Partners, LLC client. The views reflected in the commentary are subject to change at any time without notice. Nothing on this website constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Sweet Financial Partners, LLC manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results.